Thursday, August 25, 2011

China's Leading Location-based Social App Jiepang Partners with Nokia to Promote NFC Check-ins

Jiepang teams up with Nokia to introduce faster and verified ways to "check-in" and share locations with friends using a special Jiepang app designed for the new NFC-enabled Nokia smartphones, which run Symbian Belle.

HONG KONGAug. 24, 2011 /PRNewswire/ -- China's leading location-based social app, Jiepang is teaming up with Nokia to promote NFC check-ins, a faster and verified way to "check in" and share locations with friends using a special Jiepang app preloaded on the newly launched Nokia smartphones: Nokia 600, Nokia 700 and Nokia 701, which are NFC-enabled and run the latest operating system Symbian Belle.
Nokia yesterday held a global launch event in Hong Kong and invited a hundred guests to get a hands-on experience of Symbian Belle and the respective new smartphones, which emphasize ease of use, speed and fun. These benefits have been perfectly echoed by NFC check-ins as guests could instantly check-in to designated venues by swiping the NFC-enabled Nokia smartphones across Jiepang posters.
"We're grateful to team up with Nokia to explore more convenient and authentic ways to share locations with friends," said Jiepang CEO, David Liu.  "NFC check-ins has a lot of user benefits. And we think our merchant partners will feel really comfortable rewarding check-ins, as they will know for sure that Jiepang users are actually physically in their stores."
Jiepang today also announces plans to send NFC window stickers to merchant partners in six cities of the Greater China Region, which include BeijingShanghaiGuangzhouChengduTaipei and Hong Kong. Consumers will be able to check-in and share locations simply by swiping an NFC-enabled smartphone over the Jiepang sticker.
"Jiepang is really a good social and customer loyalty solution that can best leverage Nokia smartphones and Symbian Belle. We are happy to work with Jiepang in bringing a new NFC service to everyday life," said Hubert Huang, Head of Ecosystem Developer Experience, Greater China at Nokia.
Jiepang is the first location-based service in Greater China to use NFC for check-ins. Previously, in April 2011, Jiepang distributed over one thousand NFC stickers at the Strawberry Music Festival in Beijing, one of the largest music festivals inChina, to invite users to check in at the event as well as nearby venues partnered with the special NFC activity. Users were rewarded discounts and gifts for their verified NFC check-ins.
On a separate note, Jiepang has filmed a short romantic story about a young man leveraging Jiepang's NFC check-ins to propose to his girlfriend. The video can be found at
About Jiepang
Jiepang ( is a location-based social mobile app that helps friends share where they are offline and in real-time. By "checking in" with Jiepang's iPhone, Android, or other mobile application, users share that they've arrived at specific venues, as well as share tips, photos, and comments around those venues. Merchants and brands can use Jiepang to reach, engage, and learn about their customers in both the offline and online worlds. To date, over 300 brands have partnered with Jiepang including Starbucks, McDonalds, Nike, Louis Vuitton and more. Jiepang is available for download in the iPhone App Store and Android Market, as an HTML5 or WAP mobile website at, and also preloaded on all new HTC, Sony Ericsson, Nokia and other smartphone brands in China. Jiepang is headquartered in Beijing, with offices in ShanghaiGuangzhouHong KongTaipei, and other cities as it serves its over 1M users in the major cities of greater China region.
Latest updates about Jiepang are available from the official blog and Sina Weibo (Chinese language):
SOURCE Pat Meier Associates, Inc.

Intuit Card Reader Now Sold at Verizon Wireless Stores

Intuit GoPayment App and Credit Card Reader Now Available at Verizon Wireless Stores

BASKING RIDGE, N.J. & MOUNTAIN VIEW, Calif.Aug. 25, 2011 /PRNewswire/ -- Verizon Wireless and Intuit Inc. (Nasdaq:INTU) today announced a strategic alliance to give all small businesses – from the sole proprietor to a medium-sized business – the ability to process credit card payments on smartphones and tablets.  The companies are now offering Intuit's GoPaymentapp and pocket-sized credit card reader in Verizon Wireless' 2,300 retail stores and business-to-business sales channels.
GoPayment makes it easier and more affordable for small businesses to process credit cards and for anyone who sells products or services to accept credit card payments wirelessly. The card reader simply plugs into the audio jack of a supported smartphone or tablet.  Credit and debit cards can be swiped through the card reader or entered into the app manually.  The transaction is processed immediately and funds are automatically deposited into a user's bank account within a few business days.  GoPayment supports devices on Android™, BlackBerry® and iOS platforms for most popular 3G and 4G LTE smartphones and tablets.
"Intuit's GoPayment on America's most reliable network is a mobile transaction game changer, and brings another dimension of must-have technology to the small business community," said Mike Schaefer, executive director of the Business Solutions Group for Verizon Wireless.  "Payments and transactions are often the biggest hurdle businesses face.  Our value proposition is to streamline, simplify and enable business owners to get paid with minimal delay.  This collaboration with Intuit is an important part of our strategy to bring the most innovative online and mobile tools to our customers."  
"Rather than lose out on potential business, anyone who sells a product or service can now easily and affordably give their customers the option of paying with plastic," said Chris Hylen, general manager of Intuit's Payment Solutions division.  "GoPayment is meeting a huge need and is one of the fastest growing mobile payment solutions in the market.  With Verizon Wireless, we'll help even more people discover that they too can process credit card payments on the phones or tablets they already own."  
To save time when processing payments, GoPayment offers the ability to create and sell from a list of frequently sold items.  Depending on the types of goods and services sold, users can choose to apply sales tax, add tips and send customized receipts via text message and email with a map of where the transaction took place.  To protect data, sensitive credit card information is never stored on the phone.  The data is also encrypted – once via the card reader and a second time via the GoPayment app.
For the more than four million small businesses that use QuickBooks®, GoPayment can also sync transactions with recent versions of QuickBooks – PC, Mac and soon QuickBooks Online – to save time by reducing manual data entry.  GoPayment also supports up to 50 users on one account, which is ideal for businesses with multiple employees who work in the field.
Verizon Wireless customers can get the GoPayment credit card reader free with activation of a GoPayment account and a mail-in rebate for the $29.97 purchase price.  The GoPayment mobile payment app is free and the basic service has no monthly, transaction or cancellation fees, and offers a competitive 2.7 percent discount rate for swiped transactions.  
A paid version of GoPayment is also available for $12.95 a month and provides a low discount rate of 1.7 percent for swiped transactions.  Intuit is offering Verizon Wireless customers two months of free service when they select this monthly paid plan.
Customers who purchase a smartphone for their GoPayment use will need to subscribe to a Verizon Wireless Nationwide Talk plan beginning at $39.99 for monthly access.  Tablet and smartphone users require a data package starting at $30 monthly access for 2 GB of data.  
For additional information, please visit or
About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®Quicken® and TurboTax®, simplify small business management, payment and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.
Founded in 1983, Intuit had annual revenue of $3.9 billion in its fiscal year 2011. The company has approximately 8,000 employees with major offices in the United StatesCanada, the United KingdomIndia and other locations. More information can be found at
About Intuit Payment Solutions
Intuit is one of the largest small business payments processors in the U.S. It processes annually more than $17 billion in transactions for approximately 300,000 small businesses. Over the last 10 years, Intuit has helped small businesses get paid and improve cash flow with a complete family of end-to-end electronic payment solutions. This includes services to process credit cards, e-checks and online payments via a variety of channels including mobile devices, Web and retail stores as well as integrated solutions such as QuickBooks.
About Verizon Wireless
Verizon Wireless operates the nation's fastest, most advanced 4G network and largest, most reliable 3G network. The company serves 106.3 million total wireless connections, including 89.7 million retail customers.  Headquartered in Basking Ridge, N.J., with 83,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications (NYSE, NASDAQ: VZ) and Vodafone (LSE, NASDAQ: VOD).  For more information, visit To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at
SOURCE Verizon Wireless

BOKU Brings Carrier Billing to the Whole of France With New Partnerships

SFR and Bouygues Telecom deal expands direct carrier billing coverage in France to 32 million additional customers with higher payouts for BOKU™ merchants

SAN FRANCISCO--(BUSINESS WIRE)--BOKU, the global leader in online mobile payments, announced today that it has launched direct carrier billing with French carriers Bouygues Telecom and SFR, a subsidiary of Vivendi, adding to existing direct billing with Orange France. The partnership offers over an additional 32 million French customers the ability to pay for digital goods and services using only their existing wireless service account, with the charge appearing on their carrier bill. With this agreement, nearly all mobile users in France will benefit from BOKU direct carrier billing.
“User feedback and increased revenue clearly indicate how much people love the convenience of BOKU to pay via their mobile number. This new partnership will extend that convenience to many more loyal gamers in France.”
Bouygues Telecom and SFR are launching a new service enabling consumers to purchase goods online and use BOKU to pay with their mobile phone number. That service, Internet + Mobile allows a fully integrated 2-click purchase process that results in higher payouts and gives online merchants access to a full range of price points of up to 10 Euros.
"France accounts for more than 50 Million mobile subscribers and has one of the most advanced online markets in the world,” said Mark Britto, CEO of BOKU. “France is already one of BOKU’s top ten markets, and these new connections will undoubtedly keep them in that category and growing fast.”
Virtually all mobile customers in France can now pay for online content and virtual goods from participating merchants using the BOKU mobile payments service. A direct connection between the French carriers and BOKU provides value-added service to online consumers and merchants, including a secure payment mechanism that is convenient and easy to use, and that provides an alternative payment method for consumers, particularly those with limited access to credit or debit cards.
MovieStarPlanet is one merchant already taking advantage of the direct carrier billing relationship with SFR and Bouygues Telecom. “Purchasing Starcoins is now even easier with this partnership powering a safe, secure and convenient direct carrier billing option,” said MovieStarPlanet’s CEO Claus Lykke Jensen. "User feedback and increased revenue clearly indicate how much people love the convenience of BOKU to pay via their mobile number. This new partnership will extend that convenience to many more loyal gamers in France."
About BOKU:
BOKU is the global leader in online payments, allowing consumers to purchase goods and services with their wireless number, and charge to their mobile operator bill. BOKU brings bank-grade payments technology and mobile users together on the web, creating a trusted, accessible market for consumers, merchants and carriers alike. Based in San Francisco with offices in Europe and Asia, BOKU reaches over 3 billion consumers worldwide. With localization and support in 32 different languages, BOKU operates in 65 different countries, across 230 different carriers globally. Leading Silicon Valley entrepreneurs and venture capitalists fund BOKU including Andreessen Horowitz, Benchmark Capital, DAG Ventures, Index Ventures and Khosla Ventures.
The company has invested more than 84 man-years in development of the BOKU Payment Platform™, with experienced developers from state-of-the-art companies like Apple, Amazon, AT&T, Bank Of America, First USA, Google, Paypal, Visa and Yahoo!. Additionally, BOKU processes transactions in 40+ currencies, collection in 10+ currencies and offers VAT/TAX management across 65 different countries while maintaining a 24x7 on-call response team for platform issues and customer support. For more information
BOKU, 1-Tap and Pay by Mobile are registered trademarks or trademarks of BOKU, Inc., and/or its subsidiaries. All other brand names, product names, or trademarks belong to their respective holders. BOKU reserves the right to alter product offerings and specifications at any time without notice.
About SFR:
SFR is the second biggest telecommunications operator in France, with a turnover of €12.6 billion in 2010. As a global operator, it satisfies the requirements of domestic and professional customers, businesses and operators worldwide, covering mobile and fixed telecommunications, Internet and television services. SFR deploys its own mobile and fixed infrastructure, backed by expert IP (Internet Protocol) teams that live up to the ambitious demands placed on them: to be a transparent and responsible market player whose mission is to keep abreast of the needs of each individual and corporate customer, bringing them the best that digital technology can offer.
As of March 31, 2011, SFR had more than 21 million mobile customers, including some 16 million subscribers and 4.9 million high-speed home Internet subscribers. SFR is a fully-owned subsidiary of Vivendi and has around 10,000 employees.
Useful Links:
BOKU website:
MovieStarPlanet Website:
Bouygues Telecom website:
SFR Website:
Vivendi Website:

Gemalto First Half 2011 Results

  • Revenue at €928 million increases by 14%, with 21% growth in Secure Transactions
  • Profit from ongoing operations at €72 million increases by 8%, and by 35% in the main segments1
  • Secure Transactions and Security expand to generate more than half of this profit
“Profit (loss) from discontinued operation (net of income tax)”
Gemalto (PARIS:GTO)
All figures in this press release are unaudited. The income statement is presented on an adjusted basis (see page 2 “Basis of preparation of financial information”). These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable IFRS measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with IFRS. The reconciliation with the IFRS income statement is presented in Appendix3. The balance sheet is prepared in accordance with IFRS, and the cash position variation schedule is derived from the IFRS cash flow statement.
Gemalto (Euronext NL0000400653 - GTO), the world leader in digital security today announces its results for the first half of 2011.
Key figures of the adjusted income statement
  First Half 2011 First Half 2010  
  € in millions € in millions Year-on-year variation at historical exchange rates
Ongoing operations      
Revenue 928 815 +14%
Gross profit321292+10%
Operating expenses249225+11%
Profit from operations 72 67 +8%
Profit from other operations (JV deconsolidation gain) 21 0 
Olivier Piou, Chief Executive Officer, commented: “Our four main segments generated 16% revenue growth and 35% profit expansion. These results evidence Gemalto’s strong progress along its strategic plan, which combines organic growth with bolt-on acquisitions. Secure Transactions stood out, with 21% revenue growth and double-digit profit margin. Security also recorded double-digit revenue growth and increased profit margin. We continued to invest in our new mobile offerings and as a result, we expect Mobile Communication to return to year-on-year profit expansion for the second semester. The sustainable and wider adoption of the EMV standard and dual interface contactless cards further adds to our confidence in delivering on the € 300 million profit from operations target we have set for ourselves in 2013.”
1 The main segments include the Mobile Communication, Machine-to-Machine, Secure Transactions, and Security business segments representing close to 100% of the semester’s Company revenue; i.e. they exclude the Patents segment which accounted for € 2.6 million revenue in H1 2011 and €16 million revenue in H1 2010.

Discount My Way Allows Shoppers to Create Instant Discounts with their Smart Phone

Lead Generation Solutions Launches Technology to Connect Retailers and Shoppers at Point of Sale
KING OF PRUSSIA, Pa.--(EON: Enhanced Online News)--Lead Generation Solutions, a privately held firm, is proud to announce the launch of Discount My Way, which allows shoppers to utilize their smart phones to propose a purchase and request an instant discount from a retailer.
“Today, smart phones are the way a person will let you into their life. When you provide selection, timely knowledge, and discounts, the shopper will let you move in. Retailers have a huge opportunity to identify and connect directly with key demographic shoppers.”
“Shoppers want information and incentives before they buy these days, and retailers need a way to increase sales and get more productive results from their advertising spend,” says Mike Drohan, President of Lead Generation Solutions. Drohan believes it is exactly what’s needed to revolutionize how retailers do business to attract and nurture shoppers.
Shoppers no longer have to wait for discounts to be offered by a business. Now they can get the deals they want, exactly when they want them. Social coupon offers have redefined the way many retailers do business via coupons built for the masses. But even the attractive deal-a-day offers force shoppers to make decisions on the company's timeline, not their own.
With Discount My Way, the shopper can simply propose an intended purchase and a desired discount to a business which, in turn, can approve, deny, or meet the shopper somewhere in the middle with a modified deal. “It’s a new frontier and a new kind of barter system for the 21stcentury,” says Drohan. “We finally have technology that allows the retailer and shopper closer together to interact on a personal level at the point of sale.”
Drohan explains the simple concept. “A customer in the mall proposes to buy a few articles of clothing and uses Discount My Wayon their smart phone to request a 20% discount. The request is received by the retailer and then checked against sales numbers, inventory, and up to the minute business conditions and a counter-offer is made: 15%. Or the business may decide to offer a complimentary add-on product and sweeten the discount to 25%.”
Everything is based on corporate approved algorithms so there is no concern of making unprofitable offers or leaning on the store manager who is already too busy.
With Discount My Way, retailers have the never before capability to interact with shoppers when the shopper wants it; no longer are companies forced to rely on interrupting people with a TV commercial or a pop-up ad. The interaction is meaningful, welcomed, and at the exact moment a shopper can be motivated to make a purchase. With Discount My Way’s help, retailers can more competitively blend cutting-edge tech capabilities with their brick and mortar customers.
Drohan says “Today, smart phones are the way a person will let you into their life. When you provide selection, timely knowledge, and discounts, the shopper will let you move in. Retailers have a huge opportunity to identify and connect directly with key demographic shoppers.
Discount My Way will be available as a smartphone app for the Android, iPhone, & Blackberry platforms.
About Lead Generation Solutions
Lead Generation Solutions specializes in bringing the buyer and seller together. Working primarily in the business to business sector, our desire is to bring their expertise to retail and consumer relationships with a technology based offering.


Lead Generation Solutions
Mike Drohan, 610-768-8952

ACI Worldwide Increases Offer for S1 Corporation

Company Filing Definitive Proxy Statement and Mailing Letter to S1 Shareholders

Urges S1 Shareholders to Vote the BLUE Proxy Card

NEW YORKAug. 25, 2011 /PRNewswire/ -- ACI Worldwide, Inc. (Nasdaq: ACIW), a leading international provider of payment systems, today announced that it has increased its cash and stock proposal to acquire S1 Corporation (Nasdaq: SONE) from$5.70 per share plus 0.1064 ACI shares, to $6.20 per share plus 0.1064 ACI shares, assuming full proration.  Based on ACI's closing stock price on July 25, 2011, the last trading day prior to the public announcement of the ACI proposal, the ACI enhanced proposal has a blended value of $10.00 per share, and based on the closing price of ACI on August 24, 2011, the ACI enhanced proposal has a blended value of $9.29 per share.  
"ACI is committed to taking the necessary actions to complete our proposed acquisition of S1, and we believe today's action is the next step forward in this process," said Philip G. Heasley, President and Chief Executive Officer of ACI.  "Given the uncertain and volatile market conditions, we have enhanced the cash component of our proposal to provide additional certainty and value for S1 shareholders."
ACI's proposal represents a 30% premium to S1's market price on July 25, 2011, the last trading day prior to the public announcement of ACI's proposal, a 29% premium to the volume weighted average price of S1 shares over the previous 90 days prior to the announcement and a 20% premium to the 52-week high of S1 shares, for the 52-week period ending July 25, 2011.
ACI anticipates that the proposed transaction could close as early as the fourth quarter.  The Company has secured committed financing from Wells Fargo Bank, N.A. for the cash portion of the transaction and has offered to provide S1 with a copy of a commitment letter upon request.  In addition, to resolve any potential barriers to consummating a transaction, ACI has reiterated to S1 that it is willing to provide appropriate assurance of satisfaction of the Hart-Scott-Rodino Act condition, including a divestiture commitment (if required) and substantial break-up compensation.  
ACI Filing Definitive Proxy Materials
ACI also announced that, in advance of S1's Special Meeting scheduled for September 22, 2011, it is filing its definitive proxy materials with the Securities and Exchange Commission ("SEC") in connection with the solicitation of votes against proposals related to the proposed merger of S1 and Fundtech Ltd. (Nasdaq: FNDT).
Continued Mr. Heasley, "We look forward to joining with S1's shareholders in sending a message to S1 in support of ACI's superior proposal.  To preserve their opportunity to benefit from the increased certainty and the considerable financial and strategic benefits of our proposed transaction with S1, we urge S1 shareholders to vote AGAINST the Fundtech transaction."
ACI urges shareholders to vote the BLUE proxy card AGAINST the Fundtech transaction today. S1 shareholders are encouraged to read the definitive proxy materials in their entirety as they provide, among other things, a detailed discussion of ACI's superior proposal and the reasons behind the ACI recommendation that shareholders vote AGAINST the proposed Fundtech transaction.
In connection with the solicitation, ACI is mailing the following letter to S1 shareholders:
August 25, 2011
Dear S1 Shareholder:
As the S1 special meeting approaches, we urge you to carefully consider what is at stake:  S1 is asking you to dilute your shares in order to "acquire" Fundtech in a transaction that we believe is inferior to ACI Worldwide's proposal.  At the same time, S1 is denying you the opportunity to realize a premium value for your investment through ACI's proposal to acquire S1 in exchange for cash and stock, which we believe to be superior to the Fundtech transaction.  
The choice is clear—vote your BLUE proxy card AGAINST the proposed S1-Fundtech transaction today.  
ACI strongly believes that a vote AGAINST the proposed S1-Fundtech combination will:
  • Preserve the opportunity for you to receive the premium price contemplated by ACI's cash and stock proposal, which ACI believes would provide S1 shareholders with significantly greater value than the Fundtech transaction.
  • Stop S1 from entering into a transaction that would result in a radical restructuring of S1's business, ownership and governance for no premium or cash to S1 shareholders.
  • Send a strong message to S1 that you – the true owners of S1 – want S1 to consider other alternatives for the company, including ACI's premium proposal.

ACI remains committed to acquiring S1 Corporation and on August 25, 2011, submitted an enhanced proposal that, given recent market volatility, provides S1 shareholders with additional certainty for their investment.  ACI has increased the cash component of its proposal.  Under the enhanced proposal, S1 shareholders would receive $6.20 per share in cash and 0.1064 ACI shares for each share of S1 common stock they hold, assuming full proration.  Based on ACI's closing stock price on July 25, 2011, the last trading day prior to the public announcement of the ACI proposal, the ACI enhanced proposal has a blended value of $10.00 per share, and based on the closing price of ACI on August 24, 2011, the ACI enhanced proposal has a blended value of $9.29 per share.  Given its stock component, the value of the ACI proposal will fluctuate based on the market price of ACI shares.  
Click to view table full screen

Based on ACI

Based on ACI

Stock Price as of

Stock Price as of

July 25, 2011

August 24, 2011

Value of ACI Enhanced Proposal


Implied Purchase Price Premium: (1)

1-Day Prior to Announcement $7.13


90-Day VWAP $7.21


52 Week High $7.75



(1) To closing sale price for S1 shares on July 25, 2011

By pursuing the Fundtech transaction, S1 is denying you the ability to benefit from the substantial premium and immediate cash value inherent in the ACI proposal.  Furthermore, a number of Wall Street analysts have commented that they believe that the ACI proposal provides greater value to S1 shareholders than the Fundtech transaction (emphasis added):
"We suspect SONE's board will have a hard time justifying turning down a 33% immediate premium, given that the alternative SONE/Fundtech 'merger of equals' may take several years to blossom." 
(DA Davidson, July 26, 2011)*
"In addition, we are encouraged by [ACI's] proposed acquisition of S1, which, before synergies, could provide incremental and accretive cross-sell opportunities in the retail and small financial institution verticals." 
(Raymond JamesJuly 26, 2011)*
"We think the near term and more certain nature of ACIW's offer is more compelling [than the proposed SONE merger with FNDT] …. Fifth, we think the cross sales would be compelling, for example we think ACIW's international customers would be interested in SONE's highly-regarded international cash management system." 
(Stephens, July 27, 2011)*
ACI has delivered impressive performance and enhanced returns for its shareholders. Over the past five years, ACI has grown its business through a rigorous framework based on three phases of development: control, profitability and growth.  Through the successful execution of its control and profitability phases, ACI has:
  • Increased 60-month backlog to $1.6 billion in 2010, up $350 million since 2006;
  • Driven monthly recurring revenue to 68% in 2010, up nearly 29% since 2007; and
  • Increased Adjusted EBITDA margin to 21% in 2010, from 7% in 2007.

ACI is now well into the profitability and growth phases, and has generated shareholder returns greater than S1's, as well as other industry peers.  In fact, over the three years ended July 25, 2011, the date prior to when ACI announced its proposal to acquire S1, ACI has produced shareholder returns of approximately 90.2%.  Over the same time period, S1 produced a NEGATIVE 9.2% return to its shareholders!
Click to view table full screen
Company / Index

3 Year Price 
Performance (1)

ACI Worldwide

S1 Corp

Bank / Pay Technology Peer Index (2)



(1)  Price performance from July 25, 2008 to July 25, 2011

Underscoring the strength of its product portfolio, ACI's customer attrition rates for each of the past four years have been in the low single digits as a percent of its 60-month backlog and any attrition has primarily been the result of merger activity among customers rather than competitive losses.  Contrary to S1's assertions, we believe that S1 has not achieved its stated revenue gains ACI's expense.
The combination of ACI and S1 would create significant financial benefits, including considerable cost savings, beyond what either company could achieve on its own.  In fact, ACI expects to achieve more than $24 million in cost savings, compared to the $12 million contemplated in the Fundtech transaction.  
ACI expects synergies to be achieved through the combination of corporate and public company functions, reducing SG&A, streamlining product management and consolidating hosting infrastructure and facilities.  In addition, the combination of ACI and S1 would benefit from the leveraging of a global cost structure, the reducing of fixed infrastructure and the cross-selling opportunities of complementary product offerings across an expanded customer base.  
To date, ACI has provided greater clarity on its projected synergies than S1 has for the Fundtech transaction.  Despite having performed "extensive due diligence" prior to announcing their merger, S1 and Fundtech only this week included an additional$8.0 million in EBITDA, purportedly resulting from revenue synergies, and have not provided any details to support this claimed potential benefit.
ACI expects to realize its savings as early as the first quarter following closing of the transaction – much sooner than what is contemplated under the Fundtech transaction.  As an S1 shareholder, you would be able to share in these cost savings and the resulting value creation.  
Considering these greater synergies within a shorter timeframe, we strongly believe ACI's proposal is demonstrably superior to the Fundtech transaction.  
The proposed Fundtech merger provides no premium and no cash to S1 shareholders.  While S1 has characterized the Fundtech transaction both as a "merger of equals" and as an "acquisition" of Fundtech, we believe that both are incorrect.  Based upon (1) the expected roles to be played by S1's and Fundtech's management following the proposed merger, (2) the substantial ownership of the combined company by Fundtech's largest stockholder following the merger, and (3) the treatment of the merger as a "change of control" under the compensation arrangement of S1's management, we believe that the proposed Fundtech merger looks much more like a change of control rather than an "acquisition" of Fundtech or a "merger."
In the four weeks between the announcement of the Fundtech transaction and ACI's superior proposal, S1's stock price DECLINED by 5.4%, compared to an increase of 7.1% by the NASDAQ Index.  However, following the announcement of the ACI proposal, S1's stock price experienced its largest single day improvement and an all-time high over the prior three years.  Since then, S1's stock price has been tied to the value of the ACI proposal and has generally avoided the declines experienced in the overall market.  Shareholders should consider – given the 13.2% decline in the NASDAQ index over the same time period – at what price levels S1 would be trading from a $7.13 close on July 25, 2011, had ACI not made its proposal onJuly 26, 2011.
We believe that S1 overstated the potential value of the combined S1-Fundtech in its August 22, 2011 letter to shareholders.  Do not be misled by S1's claims.  Consider the following:
  • The valuation analysis provided by S1 is based on an 11x EBITDA multiple.  This is despite the fact that S1's financial advisor, Raymond James, used a multiple range of 8-10x EBITDA in the fairness opinion included in S1's proxy statement.
  • In its August 22, 2011 letter, S1 failed to account for the 11%-15% discount rate that Raymond James used to determine a present value for the shares in the fairness opinion included in S1's proxy statement.
  • S1's August 22, 2011, letter also included $8.0 million of EBITDA from purported revenue synergies for 2012; however, S1 did not include these purported synergies in announcing the Fundtech transaction and has provided no details to support these synergies.

Janney Capital Markets concluded that the analysis in S1's August 22, 2011, letter was "disingenuous,"* suggesting in anAugust 23, 2011, report that an 8.0x multiple is more appropriate for S1:
"The assumed 11.0x multiple is high. Fundtech is currently trading at 6.2x next 12 months consensus EBITDA, S1 at 12.1x, and ACI Worldwide at 7.4x. By S1's own admission, their current stock price is over-valued and ACI and Fundtech is undervalued. We believe an 8.0x multiple is more realistic …. Based on our adjustments, a combined S1/FNDT is worth $8.50 per share ….Recommending S1 shareholders apply an 11.0x multiple in valuing the proposed merger with Fundtech while assuming ACIW is worth only 7.4x is disingenuous. If 11.0x is the right multiple, SONE shareholder[s] are better off taking the $9.50per share from ACIW."  
(Janney Capital Markets, August 23, 2011)*
We believe that S1 is ignoring the compelling value of ACI's proposal and S1 is obfuscating the facts in rejecting it without even discussing it with us.  In short, S1 is denying you the substantial premium and significant upside potential of the ACI proposal.
We would strongly prefer to pursue a negotiated transaction with S1, notwithstanding the S1 Board's August 2, 2011, rejection of our merger proposal.  On August 25, 2011, ACI:
  • Increased the cash portion of our proposal from $5.70 to $6.20 per share;
  • Reiterated our willingness to provide appropriate assurance of satisfaction of the Hart-Scott-Rodino (HSR) Act condition, including a divestiture commitment (if required) and substantial break-up compensation;
  • Reiterated that we have a fully executed commitment letter from Wells Fargo Bank, N.A., sufficient to fund the cash required by our proposal and to finance our ongoing operations and offered to provide a copy of such a commitment letter upon request; and
  • Requested that the Board reconsider our proposal.

Unless and until the S1 Board commits to engage in meaningful discussions, however, we are prepared to do what is necessary to make our proposal a reality.  
There is a very clear path forward for ACI to act on its proposal and deliver immediate value to S1 shareholders.  S1 claims that conducting due diligence remains an impediment; however, the only thing standing in our way is S1's refusal to engage with ACI.  As we have made clear to S1, ACI stands ready, willing and able to promptly conduct confirmatory due diligence while also providing S1 representatives with immediate due diligence access.  
We have carefully reviewed all applicable regulatory requirements were we to acquire S1.  The combined company would continue to face intense competition from third-party software vendors, in house solutions, processors, IT service organizations and credit card associations, including from companies which are substantially larger and have substantially greater market shares than the combined company would have.  Moreover, the dynamic worldwide nature of the industry means that competitive alternatives can and do regularly emerge.  We believe that the transaction would not enable us to obtain power in, or even a significant share of, any relevant market.
We believe that it would be in the best interests of S1's shareholders for the S1 Board to authorize its management to meet with us in a timely fashion to discuss our merger proposal.  We remain confident that our proposed transaction could close as early as the fourth quarter.  
ACI is committed to taking the necessary steps to complete its proposed acquisition of S1. One of the first steps to realizing this goal and benefitting from the significant financial and strategic benefits of an ACI-S1 combination is to prevent the S1-Fundtech transaction from moving forward.  The best way to accomplish this is to vote AGAINST the Fundtech transaction on the BLUE proxy card at the upcoming Special Meeting.
Your vote is IMPORTANT no matter how many shares you own.  Please vote AGAINST the proposed Fundtech mergerTODAY by telephone, Internet or by signing, dating and returning the enclosed BLUE proxy card in the postage-paid envelope provided.
If you have any questions concerning the ACI proposal or need additional copies of ACI's materials, please contact Innisfree M&A Incorporated, toll-free at (888) 750-5834.
Philip G. Heasley
President and Chief Executive Officer
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Your Vote Is Important, No Matter How Many Shares You Own.

If you have questions about how to vote your shares on the BLUE proxy card,
or need additional assistance, please contact the firm
assisting us in the solicitation of proxies:

Stockholders Call Toll-Free:  (888) 750-5834
Banks and Brokers Call Collect:  (212) 750-5833

We urge you NOT to sign any White proxy card sent to you by S1.

* Permission to use quotations was neither sought nor obtained
Wells Fargo Securities is serving as financial advisor to ACI, and Jones Day is serving as its legal advisor.  
About ACI Worldwide
ACI Worldwide powers electronic payments for more than 800 financial institutions, retailers and processors around the world, with its broad and integrated suite of electronic payment software. More than 90 billion times each year, ACI's solutions process consumer payments. On an average day, ACI software manages more than US$12 trillion in wholesale payments. And for more than 160 organizations worldwide, ACI software helps to protect their customers from financial crime. To learn more about ACI and understand why we are trusted globally, please visit You can also find us or on Twitter @ACI_Worldwide.
Forward-Looking Statements
This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans or other statements other than statements of historical fact, are forward-looking statements and include words or phrases such as "believes," "will," "expects," "would" and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
We can give no assurance that such expectations will prove to have been correct.  Actual results could differ materially as a result of a variety of risks and uncertainties, many of which are outside of the control of management.   These risks and uncertainties include, but are not limited to the following:  (1) that a transaction with S1 may not be completed on a timely basis or on favorable terms, (2) negative effects on our business or S1's business resulting from the pendency of the merger, (3) that we may not achieve the synergies and other  expected benefits  within the expected time or in the amounts we anticipate, (4) that we may not be able to promptly and effectively integrate the merged businesses after closing and (5) that the committed financing may not be available.  Other factors that could materially affect our business and actual results of operations are discussed in our most recent 10-K as well as other filings available at the SEC's website at  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any of them in light of new information, future events or otherwise.
Certain Information Concerning The Participants
ACI and certain of its directors and officers may be deemed to be participants in any solicitation of S1 shareholders in connection with the proposed transaction. Information about the participants in the solicitation, including their interests in the transactions, is available in the proxy statement that ACI has filed with the SEC on August 25, 2011 in connection with the special meeting of S1's shareholders.
Available Information
Investors and security holders will be able to obtain free copies of all documents filed with the SEC by ACI through the website maintained by the SEC at  Copies of the documents filed with the SEC by ACI will be available free of charge on ACI's internet website at or by contacting ACI's Investor Relations Department at 646-348-6706.
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Investor Contacts:

Tamar Gerber
Vice President, Investor Relations & Financial Communications
(646) 348- 6706

Art Crozier / Jennifer Shotwell / Scott Winter
Innisfree M&A Incorporated
(212) 750-5833

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